2022/03/24 (021) Technical Analysis – UKOIL

Hedge Fund Manager Warns: „Russian Oil Deliveries Will Stop!“
Oil Price Action Price Action Could Still Climb To 200 USD
– However, Todays Price Action Drops Below 120 USD!


Stock market guru Jim Cramer has a good feeling when he looks at the current development on the US stock market. He sees promising tendencies, especially in the case of large tech stocks, which had recently faltered. He blames the growing confidence of investors – and names his favorites. “I look at the Nasdaq and I think maybe the bear market is over,” Cramer said Thursday on CNBC’s Squawk On The Street. As the technology stock index bounces back from its recent lows, the expert sees a shift in investor sentiment. They would feel more comfortable again investing money in many Nasdaq stocks. The best example of this is Nvidia: The share of the chip group rose by around ten percent on Thursday. But Cramer remains bullish beyond that and believes that Nvidia shares can lead the way in the recovery of the tech sector. In this context, Cramer also referred to the Metaverse plans of Meta Platforms. The Facebook operator’s stock fell to a 52-week low in the middle of the month and is also currently working on a comeback. However, among the so-called FAANG stocks, Alphabet is the best choice at the current level. Looking at the bare numbers, the Google parent is “so undervalued,” said Cramer. Cramer’s favorites for a comeback in the US tech sector I all themed in one of our DEVISE 2 DAY Affiliate Financial Market Online Newspaper Edition. Invested investors are sticking with it and are counting on a continuation of the rebound that has already started.

Our Trading Capability thus took off faster than excepted

On Tuesday, the 15th February, in the 3rd Edition, of our DEVISE 2 DAY Affiliate Financial Market Online Newsletter, i formulated a trading capability in the UKOIL – incl. with an entry price (93 USD), target price (130 USD) and or stop price (84 USD). In this case, UKOIL reached our target price. Everything i wrote was and or everything i`m still writing is no an investment recommendations. But, in the truest sense of the word, a trading capability for self-deciders. All my readers decide for themselves whether to trade something or not – regardless of my opinion. Because my DEVISE 2 DAY Affiliate Financial Market Online Newsletter is 100% commercially with 100% the best of my knowledge and beliefs. I always encouraging you to get better informed – to stay even 100% informative. So that you can better decide for yourself (not) act – buy/sell whatever you want.

There had been speculation for days as to whether the EU would follow the US in banning Russian oil imports. Because there were some supporters of this ban from among the EU countries. But above all heavyweight Germany and some other member countries were against – because their dependence on oil from Russia is still too high. And nobody in this country could need a drastic increase in the price of oil as a result of such a ban – because then there would be a real shortage of oil. So the oil market can sit back and relax for now. The oil from Russia can continue to flow – if someone in Europe still wants to buy it. But what else will the next few weeks around the Ukraine war bring? Will there be further escalation, and with it further rounds of sanctions by the West, and will a ban on oil imports from Russia come back on the agenda? This has now become very unlikely, but it still cannot be ruled out 100 percent. International Energy Agency (IEA) chief Fatih Birol said today that it stands ready to release more oil from government (member country) reserves if necessary. Such a possible increase in global oil supply naturally helps the price of oil to fall somewhat.

Hedge Fund Manager: Russian Oil Deliveries Will Stop

Hedge fund manager Pierre Andurand doesn’t see the end of the road as yet. According to “MarketWatch”, the founder of the investment company Andurand Capital Management previously bet that the price of oil would fall into the red – which actually happened in spring 2020 in the wake of the Corona crash – but the market expert’s price target is now significantly more bullish . As Andurand recently explained in the “Bloomberg” podcast “Odd Lots”, it is currently not to be assumed that oil from Russia will be supplied to Europe and the USA in the future – regardless of how quickly Russia and Ukraine reach an agreement. “So for me it’s not just about the ceasefire, I think sanctions on Russia will stay in place until the West feels they can trust them and that they won’t attack another neighbor a few months later or attack NATO countries,” the investor said in the podcast. “I mean, you can’t suddenly negotiate from the fear of nuclear attacks and the use of chemical and biological weapons and give them money again.” As a result, Andurand expects Russian oil to disappear from Western markets.

Oil Price Action Could Still Climb To 200 USD This Year

Nevertheless, the western states cannot easily replace the lack of oil supplies. The hedge fund manager estimates that about 4 million barrels of oil could be lost from Russian supplies, of which the Gulf states could replace about 1.5 million barrels. The rest of the difference will have to be drawn from reserves in western countries, which should be exhausted after two and a half years. Shale producers and some OPEC members are also unlikely to be able to ramp up their production capacities too quickly. According to Andurand, a relaxation of the situation on the oil market could ensure that the demand for the raw material is reduced by rising prices. The market observer considers an oil price of 200 US dollars to be realistic this year. “To have the same impact on the economy as the high price of 2008 when it was $150, it could now be closer to $250,” the expert explained.

Brent Crude Drops Below 120 USD

Brent crude futures extended losses to trade around $117 per barrel on Thursday, following a 5% jump in the previous session, and volatility is set to continue as traders took profits and assess the outlook for supply and demand, with the war in Ukraine remaining in the spotlight. President Joe Biden is set to announce additional sanctions against Russia. The US national security adviser Jake Sullivan said that an agreement between the EU and the US to ensure supplies of natural gas could be announced as soon as Friday, Bloomberg reported, but an European oil embargo on Russia seems unlikely. Investors also weigh progress in Iran nuclear deal talks, a halt in Kazakhstan’s Caspian Pipeline Consortium terminal due to storm damage, China’s worst coronavirus outbreak so far, and lower US crude inventories.